how to do crowdfunding right - lessons learned and case studies
TRANSCRIPT
December 2014 | www.rockitresults.com
How to Do
Crowdfunding - the
Right Way
The Promise of Crowdfunding
The Reality of Crowd-Funding
• Only 34% of crowdfunding
campaigns succeed
• More than 100 platforms to
choose from
• Fees range from 3 to 12 percent
• Successfully-crowdfunded
projects aren’t always able to
deliver on their promises. No
penalty for late delivery.
About Matt Fieldman
www.rockitresults.com | @rockitresults
Today In the Past
VP of External Affairs, MAGNET Volunteered in Israel, Russia
CEO, Rockit Results Jewish Federation of Cleveland
Co-founder and Board President,EDWINS Leadership and Restaurant Institute
MedWish International
Founder, Cleveland Codes Fathom
Is Crowdfunding the Right
Choice for You?
Questions to Ask Yourself
• Do I have a real value proposition?
• How will engaging with my campaign enhance the lives of my supporters? What story will they tell themselves about the money they invest with me?
• Is my tribe big and committed enough to support this?
• Is this the last step in the process – or the first?
• Is crowdfunding really the best way to sell this product/service?
Questions to Ask Yourself
• Have you done
your research?
• Have you used
the CASE
method? R&D?
Alternatives to Mainstream Platforms
• Etapestry
• First Giving
• CrowdRise
• GoFundMe
• Wikipedia
comparison
Complicated to Choose
CrowdsUnite.com – Platform Selection
Strategies
Crowdfunding, Like All Sales, is Based on
Trust
Keep in Mind
Basic Strategies #1
• Have some funding already lined up. Campaigns that hit 60% funding almost always hit 100%.
• 25% of your funding should come from your “inner circle” within the first 2 weeks. (Hint: Annual Board Gift)
• Think about how you can incentivize backers to spread the word.
Basic Strategies #2
• Don’t bank on
Indiegogo or
Kickstarter promoting
your campaign.
• Indiegogo offers more
variety and tax
deductions for
nonprofit campaigns.
• Campaigns with videos
raise 114% more than
those without.
Advanced Strategies
Choose the Right Funding Strategy
• Fixed funding – campaign only moves forward if 100% funded
• Flexible funding – allows for raising less than the goal, at a higher fee
Create Unique, Exciting Perks
• Optimal number is 5 to 8; need to be exclusive and “cool”; focus on $75 level
• Utilize perks to entice Early Adopters. Limited editions, discounts, and other special recognition all work.
Have a Social Media Plan
• Pre-plan your campaign
• Use Thunderclap or Headtalker to coordinate many people
Advanced Strategies
• Regular updates for backers – best example of update
strategy
• Anticipate questions and set up a FAQ
• Referral contest
Generate custom links
for participants
Advanced Strategies
Utilize Your Dashboard to Update Your Campaign on the Fly
The Video
Key Strategies for a Great Crowdfunding
Video
• Production quality directly impacts likelihood of giving
• Keep it under 3 minutes – storyboard beforehand
• Have a great thumbnail so people hit play
• Appeal to the emotions, particularly “I need to have THAT!”
• Answer the consumer’s question: “What’s in it for me?”
• Stress the urgency – that the consumer shouldn’t wait until the product hits stores
Crowdfunding for Nonprofits
Keys to Nonprofit Crowdfunding Success
• Best for closing current prospects – NOT engaging brand-new
ones
• Think about what your donors would want
• Appeal to brains and heart – matching gift AND great
words/images.
• Offer evidence of your impact
• Celebrity supporters/endorsements
• Take a lesson from “Wait…Wait…”
Perks for Nonprofits
• Cheap printing: postcards, t-shirts, return
address labels
• Handwritten card or regular updates by
recipient / signed photos
• Public recognition
• Tickets to exclusive events
• Lunch with the Executive Director,
celebrity, or even other donors
• Experiences: Volunteer donations?
Corporate friends?
Case Study #1:
EDWINS Leadership and
Restaurant Institute
Why EDWINS Succeeded
• Strong initial tribe, with
a good mix of small
and big contributions
• Commitment of Board
to solicit friends and
family
• Emotional, meaningful
video
• Good use of Updates
and Gallery
• Unique, exclusive
perks
Promotion Ideas
The Importance of Promotion
• Link
National Outreach Strategies - Free
• Leverage social media in a big way
• Draft notification emails for friends, family, donors, etc.
• Write an article for posting on these websites
– EzineArticles
– Hub Pages
– Go Articles
– Article Dashboard
– Business Know-How
• Search for bloggers in your space. Offer them a free trial in
exchange for posting about your campaign.
• Comment on related blog topics, again found through searches.
• Search and post in relevant Facebook groups, email groups:
Yahoo, Google, Meetup, LinkedIn
Local Outreach Strategy - Free
• Post ads on CraigsList a weekly basis
• Freshwater Cleveland, CoolCleveland, other media outlets
• LinkedIn – search for relevant individuals and groups.
• “Accelerate 2015” for new ideas
Local Outreach Strategy - Free
• If you use any sort of paid search or Google Grant, be sure to post an ad campaign in your existing channels
• If you use any local directories (YellowPages, Google Business, CitySearch, etc) be sure to add a few lines about the contest and a link to the website.
Conclusion
In Closing – Final Reminders
1. Make sure crowdfunding
is the right channel
2. Offer amazing perks
3. Line up funders in
advance
4. Create a killer video
5. Have a robust promotion
strategy ready to roll
6. Keep your promises
Appendix
Case Study #2:
Fish Allure
Why Fish Allure Failed
• Funding not lined up in
advance
• Creating a new industry – not
something people are used to
• Not the right “thumbnail”
image
• Crowdfunding probably is NOT
the right strategy – need to go
directly to retailers